A new study highlights Germany’s alarming decline in productive investments, ranking last among 34 industrialized and emerging nations.

Germany’s investment in new factories, facilities, and technologies has plummeted to just 0.2% of its economic output, according to a McKinsey study. This figure places Germany at the bottom among 34 industrialized and emerging nations, far behind China (23%), the United States (4%), and the EU average (2%). The study, cited by the FAZ, describes this as an ‘investment boycott,’ with the country focusing on maintaining existing infrastructure rather than fostering growth.

The study attributes the stagnation to high costs, including labor and energy expenses, slow approval processes, and extended development timelines. For instance, developing an electric vehicle platform in Germany costs three to four times more than in China. Dr. Jan Mischke, the study’s author, emphasizes the need for higher net investments, increased innovation, improved productivity, and faster approval processes to revive growth in Germany’s economy.